Designated Singapore banks to offer custody, trading services for China bond market investors

THE Monetary Authority of Singapore (MAS) and the People's Bank of China (PBC) will set up a cooperation mechanism to enable designated Singapore and Chinese banks to offer custody and trading services for regional and global investors in China's bond market, Singapore's central bank said on Tuesday.

At this point, DBS will be granted a settlement agent licence by the PBC that will permit Singapore's largest bank to trade, settle and provide custody for China's interbank bond market instruments on behalf of foreign investors, MAS said.

The moves are part of new initiatives forged between Singapore and China as they look to expand the reach of financial institutions in each other's markets.